Bill Text: HI SB983 | 2014 | Regular Session | Introduced
Bill Title: Taxation; Construction Services; Non-Wage Payments
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-12-18 - Carried over to 2014 Regular Session. [SB983 Detail]
Download: Hawaii-2014-SB983-Introduced.html
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THE SENATE |
S.B. NO. |
983 |
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TWENTY-SEVENTH LEGISLATURE, 2013 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TAXATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 231, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§231- Reporting of non-wage payments; construction service providers. (a) Any payor engaged in a trade or business and making a payment, other than wages, in the course of the payor's trade or business to another person, corporation, partnership, association, or limited liability company valued at no less than $600 in any taxable year for the receipt of construction services shall submit a report of the payment to the provider of construction services and the department in a manner prescribed by the department; provided that the report specifies:
(1) The name and address of the payor;
(2) The name, address, and tax identification number of the provider of construction services;
(3) The total amount that the payor paid to the provider of construction services in the taxable year; and
(4) Any other information that the department shall require by rule.
(b) The payment report shall be transmitted by the payor to the department and the provider of construction services on or before January 31 following the taxable year in which the payment was made.
(c) The department shall transmit the report to the director of labor and industrial relations for purposes of securing contributions into the unemployment compensation fund no later than the first day of the month following the calendar quarter in which the report was received. The department may share the report, upon request, with any other state or federal law enforcement agency, notwithstanding chapter 92F.
(d) The failure to file a report, or filing an incomplete report, shall result in a fine of $10,000.
(e) Knowingly failing to file a report, or knowingly filing an incomplete, false, or misleading report shall result in a fine pursuant to of $20,000.
(f) The requirements of this section shall not apply to any payment for construction services by a person whose business plan does not include the contracting of construction services while in the normal or regular course of the person's trade or business, as determined by the director through rules.
(g) For the purposes of this section:
"Construction service provider" means a person performing construction services.
"Construction services" includes the erection, excavation, installation, alteration, addition, modification, repair, improvement, demolition, destruction, dismantling, or removal of all or any part of a building, structure, dock, wharf, surface, or subsurface construction on or attached to any real property. If the payment to the construction service provider includes payment for materials and equipment as well as construction services, the payment shall also be reported.
"Person" includes an individual, corporation, partnership, association, or limited liability company."
"Payment" shall not include wages paid to an employee of the payor."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act, upon its approval, shall apply to taxable years beginning after December 31, 2012.
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INTRODUCED BY: |
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Report Title:
Taxation; Construction Services; Non-Wage Payments
Description:
Requires payors of non-wage payments for construction services to report the payments to the department of taxation and the provider of construction services.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
